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A non-profit sports association inquired whether its advertising service profits are taxed at 10% or 25%. The DGT ruled that, as it is not a public utility entity, its income from economic activities is subject to the general rate of 25%.
Non-profit organisations that do not qualify as public utility entities must apply the standard corporate tax rate to income derived from commercial activities, rather than the reduced rate.
The tax team reviews your specific situation.
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